Block Inc. Implements Workforce Reduction
Block Inc., a fintech company co-founded by former Twitter CEO Jack Dorsey, has recently made the decision to lay off some of its employees. This is the second time in two months that the company has chosen to reduce its workforce. The cuts align with Dorsey’s previous statement that the firm aims to decrease its total headcount by 10% by 2024.
Details of the Workforce Slash
In a note sent to Block staff on January 30, 2024, Dorsey explained that the workforce reduction will impact employees at CashApp, Foundational, and Square – subsidiaries controlled by Block. Each subsidiary conducted an assessment to determine which teams needed to be downsized, restructured, or reorganized. While the exact number of affected workers was not disclosed, it was reported that Block let go of nearly 1000 employees.
Streamlining Operations and Setting Limits
This recent round of job cuts marks the second occurrence within two months at Block. In December 2023, Tidal, another subsidiary of Block, also laid off more than 10% of its employees following an announcement by Dorsey in November. The CEO had previously stated that Block aimed to set an “absolute cap” on its workforce, reducing it to 12,000 employees by the end of 2024. This measure was implemented before the company’s initial public offering (IPO) and proved successful.
Hot Take: Block Inc.’s Ongoing Workforce Reduction
Block Inc., co-founded by former Twitter CEO Jack Dorsey, continues to make significant cuts to its workforce in an effort to streamline operations and control growth. The recent layoffs at subsidiaries such as CashApp, Foundational, and Square indicate a strategic approach to downsizing and restructuring teams. By implementing an “absolute cap” on the number of employees, Block aims to maintain control over its workforce size. While these measures may lead to short-term disruptions, they are part of Block’s long-term vision for sustainable growth and operational efficiency.
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